In the real estate game, one size does not necessarily fit all. Buying a single family home isn't the same as buying a multi-family property and that being the case, there are some things to keep in mind to make the process easier while saving you money. Owning an apartment building can be a lucrative investment, especially when using a full-service flat-fee real estate firm, such as Real Link as a guide.
Ask For Help
Don't be afraid to reach out. Utilizing someone else's expertise may save you time, energy, patience, and money. Seek the help of someone who has accomplished what you are trying to achieve in an effort to mitigate problems and risks. While you want to begin this venture solo, don't.
Inspector Overkill Can Kill Your Budget
Initially, the thought of hiring an inspector to walk through every unit makes sense. You want to know whether the price is right for what you are getting into. It's natural to want to know what issues are going to be costly and you'd hire and inspector to go over a single family home, right? Yes, but this is an area where doing some of the footwork yourself can save you a lot of money. It's not necessary to have a professional inspector inspect everything, and let's face it, they are not cheap. Determine what needs professional attention and what doesn't and handle as much as you can. All of your hard work will be rewarded with additional savings.
Conservative Underwriting Is Key
No matter how well you try and mitigate risks, somethings you just can't control and no building is perfect. With that in mind, adding a little extra padding to the rehab cost to cover catastrophic situations such as fire damage or flood will work out in your favor.
Patience and Trust
Again, don't try to do everything yourself; if you have a crew, utilize them. It's understandable that with such a big undertaking, one might be tempted to micromanage, but part of managing a project is the ability to delegate. If you are fortunate enough to have talented professionals within reach, use their strengths and let them take the wheel. It makes for a less stressful transaction, it gives others a sense of purpose, and it will relieve some of the stress and free up some much needed time and energy that can be devoted elsewhere.
Purchasing an apartment building isn't speedy so don’t set yourself up for failure. It can take months to close a deal and many times the process is fraught with delays and obstacles. Things can happen; the weather could decide not cooperate, the seller may have a few things to fix before the deal can be finalized, and of course, haggling over the price can also add time to the project.
Real Link, a full-service, flat fee real estate firm specializes in making real estate deals as hassle-free as possible. The professional realtors know that part of the thrill of real estate is getting a good deal and their goal is to save you thousands of dollars that would otherwise go towards commissions and fees.